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Group 1 Automotive (GPI) Just Reclaimed the 200-Day Moving Average
Group 1 Automotive (GPI - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GPI broke through the 200-day moving average, which suggests a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
Shares of GPI have been moving higher over the past four weeks, up 10.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that GPI could be poised for a continued surge.
The bullish case solidifies once investors consider GPI's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Investors should think about putting GPI on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.